Allowed

Indian Bank v. Sh. Rajan Kanwar and Another

DRT18 Oct 2025OA/1156/2025

Case brief

AI extract

What is this about?

The DRT-III allowed the bank applicant's claim against two defendants for recovering outstanding loan dues of approx Rs. 23.60 Lacs declared NPA, granting a Recovery Certificate and ordering payment with interest.

What did the court decide?

Recovery of Rs. 23,60,620 jointly and severally with costs and future simple interest @8.00% p.a.; issue of Recovery Certificate; permission for sale of mortgaged properties.

Indian Bank versus Sh. Rajan Kanwar and Another — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1156/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.08.2025

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DATE OF DECISION: 18.10.2025

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Indian Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Head Office at 254- 260, Avvai Shanmugham Salai, Royapettah, Chennai, Tamil Nadu-600014 and having its Zonal Office at Chandigarh and amongst other branches a branch at Kharar through its Branch Manager Mr. Surinder Singh Bisht duly constituted and Authorized Signatory.

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……..Applicant

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Versus

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Sh. Rajan Kanwar s/o Sh. Baldev Singh r/o House no. 8909, Swaraj Nagar, Sector-1 Kharar, District Mohali, Punjab

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Also at: House no. 2689, 1^st Floor, Phase-11, Sector 65, Mohali, Punjab-160062

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Smt. Meenu Kanwar w/o Sh. Rajan Kanwar r/o House no. 8909, Swaraj Nagar Sector-1, Kharar, District Mohali, Punjab

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Also at: House no. 2689 1^st Floor, Phase-11 Sector-65 Mohali160062.

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….……Defendants

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Advocates:

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Argued by Ms. Deepika Mittal, Advocate for the applicant

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Defendants already ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendants for recovery of Rs.23,60,620.00p (Rupees Twenty Three Lacs Sixty Thousand Six Hundred and Twenty only). The Original Application has been filed through Mr. Surinder Singh Bisht, Branch manager of the applicant, who is competent to institute the

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OA NO.1156/2025 INDIAN BANK VS SH. RANJAN KANWAR AND ANOTHER

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Original Application vide Power of Attorney dated 05.04.2017, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of Housing Loan of Rs.22.00 Lacs vide loan application dated 14.03.2016, which is Annexures A2 to this OA. Thereafter, the defendants approached the applicant fore grant of Top Up Loan of Rs.5.50 Lacs, vide loan application dated 26.12.2017, which is Annexure A12 to this OA.

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The applicant sanctioned the Housing Loan of Rs.22.00 Lacs vide sanction letter dated 16.03.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants vide acknowledgement letter dated 16.03.2016. Thereafter, the applicant sanctioned Top Up Loan of Rs. 5.50 Lacs vide sanction letter dated 29.12.2017, which is which is Annexure A13 to this OA.

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Defendant no. 2 had mortgaged her immovable property i.e. House measuring 00Kanal-02Marla, situated at Swaraj Nagar, Hadbast No. 184, Kharar, District Mohali, Punjab vide equitable mortgage of sale deed bearing vasika no. 8629 dated 18.03.2016, which is Annexure A10 to this OA; Letter of mortgagor confirming deposit of title deeds, dated 18.03.2016, which is Annexure A6 to this OA; Declaration by borrower-mortgagor, dated 18.03.2016, which is Annexure A7 to this OA; Revised draft of recital applicable in case of proprietorship firm/individual dated 18.03.2016, which is Annexure A8 to this OA; Affidavit dated 16.03.2016 along with its translation, which are Annexure A9 and A10 to this OA; Supplementary letter of mortgagor confirming deposit of title deed and revised supplementary recital for extension, both dated 29.12.2017, which are Annexures A16 and A17 to this OA.

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Documents executed:- D P Note, dated 17.03.2016, which is Annexure A4 to this OA; Consent Clause to be executed by the borrower, dated 16.03.2016, which is Annexure A5 to this OA; D.P.

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OA NO.1156/2025 INDIAN BANK VS SH. RANJAN KANWAR AND ANOTHER

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note dated 29.12.2017, which is Annexure A14 to this OA; Consent Clause to be executed by the borrower, dated 28.12.2017, which is Annexure A15 to this OA; Recall Notice dated 20.04.2024, Annexure A18 to this OA; Legal notice dated 11.06.2025, which is Annexure A19 to this OA; Acknowledgement of debts dated 27.11.2018 & 30.06.2024, which are Annexures A20 & A21 to this OA; Notice dated 08.07.2025 u/s 13(2) of SARFAESI Act, which is Annexure A22 to this OA and Statement of accounts, which is Annexure A23 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.23,60,620.00p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex parte on 08.10.2025.

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In support of the OA, affidavit of Mr. Surinder Singh Bisht, Branch manager, Indian Bank, h as been filed.

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Heard ex-arguments and perused record.

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It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A23 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is

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OA NO.1156/2025 INDIAN BANK VS SH. RANJAN KANWAR AND ANOTHER

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proved that applicant is entitled to recover a sum of Rs.23,60,620.00p (Rupees Twenty Three Lacs Sixty Thousand Six Hundred and Twenty only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.70%p.a. in Home Loan and @8.25% p.a. in Top Up Loan, with monthly rests, from 06.08.2025 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,60,620.00p (Rupees Twenty Three Lacs Sixty Thousand Six Hundred and Twenty only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and

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OA NO.1156/2025 INDIAN BANK VS SH. RANJAN KANWAR AND ANOTHER

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sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 30.10.2025. 15. Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal . Dated: 18.10.2025

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Bank v. Sh. Rajan Kanwar and Another

Case brief

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Indian Bank v. Sh. Rajan Kanwar and Another

Case brief

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